Economy on recovery track | rates increase

HSH Associates reported Thursday that the average 30 year fixed rate loan hit a 6-month high of 5.09% on higher than expected retail sales and producer price data. Both reports signal the economy is on track for recovery, but cause concerns about rising inflation. Most economists predict rates will continue to rise in the coming year from the record lows they reached in November.‬ ‪ ‬
‪A general rule of thumb holds that every one-percentage-point-increase in rates effectively raises home prices for buyers by roughly 10%. ‬ ‪ ‬
‪Here are our weekend rates for buyers with 740+ credit scores:‬
Conv 30 year fixed ($125,000-$417,000
): 4.875% Conv 30 year fixed: ($417,000-$535,900):
5.0% FHA 30 year fixed:
4.75% FHA 5/1 ARM:
3.0% Jumbo 30 year
: 5.125%
Please note all rates reflect a 1% origination fee. Rates do vary by loan amount, credit scare, occupancy, and loan-to-value.

Wes Atiyeh
Associate Broker
Long and Foster

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